Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Procurement of land near Lahore: NICL caused Rs 1.045 billion loss to exchequer: NAB
08-30-2010, 12:41 PM
Post: #1
Procurement of land near Lahore: NICL caused Rs 1.045 billion loss to exchequer: NAB
ISLAMABAD (August 30 2010): The National Accountability Bureau (NAB) has confirmed that National Insurance Corporation of Pakistan (NICL) had caused Rs 1.045 billion loss to the national exchequer in procurement of 803 kanals and 19 marlas land near Lahore. Official documents, available with Business Recorder, also verified that the NICL had abused Public Procurement Regulatory Authority (PPRA) Rules.

National Insurance Corporation Chairman Ayaz Niazi was reportedly the key man who struck a deal with the landowner with the approval of the Board of Directors, duly represented by the Commerce Ministry.

A subcommittee of the Senate, headed by Ishaq Dar, is also investigating the matter. However, the committee has not met for the last several months due to unknown reasons.

The NAB in its inquiry report, which was completed more than one month ago, has made the following revelations: a- 100 percent ownership record of land offered by Privilege Farms Pvt Ltd was not verified by NICL from concerned departments.

b- Punjab Board of Revenue confirmed that a vast gap existed between the market sale price of land and the price on which NICL purchased the land. The revenue staff of concerned areas reported that the market price of the purchased land was Rs 3,12,500 to Rs 4,12,500 per kanal whereas NICL purchased at exorbitant rate of Rs 21,00,000 per kanal, causing loss of approximately Rs 1.045 billion to national exchequer/NICL.

c- In the absence of basic requirement/eligibility of having 100 percent ownership record, Privilege Farms was unable to qualify for award of contract, even then the management of NICL not only awarded the contract and made the payment but also violated PPRA Ordinance/Rules and purchased the land located in a remote area at exorbitant rates causing loss to the national exchequer which reflected misprocurement, corruption and fraudulent practice.

d- NICL had hired two evaluators registered with Pakistan Banks Association (PBA), named as Medallions Pvt Ltd and S A Associates, for valuation of the land but the Board of Directors of NICL approved to purchase the land five days before receipt of report from one of the two evaluators. This haste creates suspicion and reflects the mens rea (criminal intent) of the management of NICL.

e- On the panel of PBA, the concerned evaluators not only quoted high rate in a remote areas but also manipulated the rates in favour of interested party ie Privilege Farms, thus causing loss to national exchequer.

f- Privilege Farms, seller of the land to NICL, was registered on May 18, 2006 with SECP. Director of Privilege Farms issued 35.78 million shares of Rs 10 each against purchase of land but did not intimate to SECP as per provisions of Companies Ordinance.

g- Privilege Farms was registered in 2006 while the amount received from NICL was deposited in an account opened on February 4, 2010 in Dubai Islamic Bank, Gulgerg Branch, Lahore. Subsequently, an amount was transferred two personal joint accounts of Directors of Privilege Farms.

h- During inquiry, the complainant to Supreme Court of Pakistan was revealed as real brother of the failed bidder Danish Ahmed, owner/Director of Dream Resort Limited.

i- During inquiry following price/value of 803 kanal and 19 marla land located at Mouza Toor Warraich, off Ferozepur Road, Tehsil Cantt, District Lahore, has been revealed: (i) valuation table price/schedule rate- Rs 0.1 million per kanal; (ii) average sale price -Rs 0.109 million per kanal; (iii) market price - Rs 0.312 million per kanal; (iv) price paid by Privilege Farms Pvt. Ltd- Rs 0.5 million per kanal; (v) price offered by unsuccessful bidder - Rs 0.8 million per kanal and; (vi) price paid by NICL- Rs 2.1 million per kanal.

Inquiry report concludes that prima facie the management of NICL failed to observe PPRA/government rules in purchase of 803 kanal, 19 marla land from a bidder who did not meet the basic eligibility criteria/requirements as advertised by NICL and mentioned in the tender documents resulting in purchase of the subject land at exorbitant rates.

A couple of months ago, Senator Ishaq Dar had told this scribe that NICL Chairman Ayaz Niazi has assured the subcommittee that it would "consider the deal as scrapped" but it is not confirmed whether the Chairman honoured his commitment or not.

Ishaq Dar, who also directed NICL Chairman to rent out the property purchased in Dubai, was not available for comments.

A number of phone calls were made to NICL Chairman, besides short messages on his cell number for comments on NAB inquiry report, but he did not reply till the filing of this story.
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Crackdown Against Encroachments – State’s Land Of Worth Rs. 1.5 billion Recovered Salman 0 2,744 02-28-2014 01:40 PM
Last Post: Salman
  Land Department Plans To Develop Nurseries At Railways Land Salman 0 6,310 11-11-2013 04:57 PM
Last Post: Salman
  Walled City Of Lahore Authority Asks For The Approval Of Over Rs 2 Billion Projects Salman 0 12,926 07-01-2013 01:31 PM
Last Post: Salman
  Land for road to Bahria Enclave: Official causes Rs5bn loss to CDA Salman 0 7,006 05-29-2013 11:45 AM
Last Post: Salman
  Development at a great loss Salman 0 2,023 07-16-2012 12:12 PM
Last Post: Salman
  Energy crisis causing irreparable loss to national economy: CM Salman 0 2,224 04-07-2012 12:15 PM
Last Post: Salman
  Pakistan Railway Land News : 300 acres of PR land retrieved’ Salman 0 3,105 03-19-2012 01:31 PM
Last Post: Salman
  ‘Illegal allotment by CDA caused losses of billions’ Lahore_Real_Estate 0 2,504 01-24-2012 11:36 AM
Last Post: Lahore_Real_Estate
  Lahore Property News : LDA City Lahore land acquired Salman 0 11,601 01-05-2012 12:45 PM
Last Post: Salman
  Land Mafia illegally occupying NBP land in defiance of SHC orders Lahore_Real_Estate 0 2,804 09-07-2011 12:55 PM
Last Post: Lahore_Real_Estate
  mukesh ambaani built his $ 2 Billion House on the Land of Muslim Orphan House! LRE 0 2,719 01-30-2011 02:22 PM
Last Post: LRE
  Red warrant issued for Moonis Elahi in NICL case Lahore_Real_Estate 0 2,205 01-29-2011 02:28 PM
Last Post: Lahore_Real_Estate
  FIA registers another case against 11 in NICL land scam Lahore_Real_Estate 0 2,011 11-20-2010 01:00 PM
Last Post: Lahore_Real_Estate
  1 more arrested in Rs1.6bn NICL land purchase scam Lahore_Real_Estate 0 2,286 11-16-2010 01:52 PM
Last Post: Lahore_Real_Estate
  Poultry industry suffered Rs eight billion loss due to floods Lahore_Real_Estate 0 2,618 10-28-2010 03:16 PM
Last Post: Lahore_Real_Estate
  Land scam: Supreme Court asks ministry to register FIR against NICL chairman, BoD Lahore_Real_Estate 0 3,251 10-13-2010 12:53 PM
Last Post: Lahore_Real_Estate
  Non-completion of housing schemes: OPF suffers Rs 718.78 million loss Lahore_Real_Estate 0 2,232 10-11-2010 12:04 PM
Last Post: Lahore_Real_Estate
  WHO approves procurement of pneumonia vaccine Lahore_Real_Estate 0 2,168 09-25-2010 12:10 PM
Last Post: Lahore_Real_Estate
  Substandard Building Material Caused 139 People Buried in Bismillah Manzil Karachi LRE 0 2,327 07-27-2010 06:00 PM
Last Post: LRE
  ATT Affecting Pak Economy Badly; Causing Loss of Billions of Dollars LRE 0 2,519 07-13-2010 12:25 AM
Last Post: LRE

Forum Jump:


User(s) browsing this thread: 1 Guest(s)